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Total outstanding dues of States to Generating Companies (Gencos) have reduced to half within over a year, post implementation of Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, the Power Ministry said on Thursday. The current outstanding dues stand at Rs. 61,025 crore, which were at Rs. 1,20,540 crore in June last year.

"The total outstanding dues of States towards Generating Companies reported on PRAAPTI Portal which were at Rs. 1,20,540 Cr. as on 03.06.2022 have been reduced to Rs. 61,025 Cr. as on 24.07.2023 with timely payment of twelve (12) Equated Monthly Installments (EMIs)," a statement from the ministry read.

Union Minister of New Renewable Energy & Power, R. K. Singh, in a written reply to Lok Sabha, said that the distribution companies are also paying their current dues promptly to avoid regulations under the rule. However, some State Generating Companies have sought working capital assistance from Power Finance Corporation Ltd. (PFC) and Rural Electrification Corporation Limited (REC) for procurement of coal pending realization of their dues.

REC has already provided loan assistance to various utilities for this purpose and the PFC has a policy in place that allows the sanction of short-term loans to state power plants to purchase coal, the minister said.

Further mentioning the current figures of coal stock in India, the Power ministry' statement said that there is currently no shortage of coal in State Sector Plants.

"As of 31st March 2023, the coal stock available at 180 Domestic Coal Based (DCB) plants was 34.6 Million Ton (MT). On 17th July 2023, it was reported to be 33.4 MT. These stocks are sufficient to run the plants for an average of 13 days at 85 percent Plant Load Factor (PLF)."

"Similarly, the coal stock at 57 State Sector Plants as of 17th July 2023 was 9.6 MT, which is sufficient to operate these plants for an average of 10 days at 85 percent PLF," said the statement.

The Power Ministry has taken several measures to ensure smooth coal supply to power plants for uninterrupted power generation. An Inter-Ministerial Sub-Group comprising representatives from various ministries and companies regularly meets to make operational decisions to enhance coal supply to thermal power plants. Revised coal stocking norms mandate power plants to maintain sufficient stock at all times for any contingent situation.

In addition, various power utilities have imported coal considering their requirements and cost economics. The Railways have also made arrangements for the net induction of coal-carrying wagons, significantly increasing the transportation capacity for coal.

Furthermore, the captive coal mine production target for Financial Year 2023-24 has been set at 141 million tonnes to ensure sufficient coal supply.

Earlier in November, 2022, the power ministry had stated that with the implementation of Electricity (LPS and Related Matters) Rules, 2022, remarkable improvement has been seen in recovery of outstanding dues of Suppliers including Generating Companies, Transmission Companies and Traders.

The PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators), portal was launched in May 2018, to bring in transparency in power-purchase transactions between generators and discoms.